In only one hour, the price of Storj shot up sixteen percent, diverting investors’ attention from Solana or Injective’s incredible growth. But a quick price increase does not always translate into a long-term profit.
Even though it was only temporary, the sharp rise in STORJ’s value is notable given the volatility of the cryptocurrency market and how quickly investor mood and price may change. These surges are frequently caused by a combination of elements, such as big trades, investor behaviour, and market rumours.
https://x.com/lookonchain/status/1736222843795623966?s=20
After the price spike, there was significant activity identified with two wallets that took out 23 million STORJ (about $23.7 million) from top cryptocurrency exchanges Binance and OKX. The fact that substantial withdrawals are occasionally linked to changes in price makes this transaction noteworthy. Regarding STORJ, this implies that significant investors may be reducing the amount of stock they own, either as a reaction to current market movements or in expectation of future events.
Due to the imbalance between supply and demand, the removal of such a large volume of STORJ from exchanges lowers the supply that is accessible for trade, which may exacerbate price volatility. The decreased sell-side pressure may sustain the price of STORJ and perhaps lead to additional rise if the owners of these wallets choose not to sell their holdings on the open market.
But it’s equally important to think about the other possibility. Increased sell pressure might reverse the recent price increases and cause a downward market correction if these major investors were to sell their STORJ.
